Question

In: Accounting

In May 2019, Cassie acquired a machine for $30,000 to use in her business. The machine...

In May 2019, Cassie acquired a machine for $30,000 to use in her business. The machine is classified as 5-year property. Cassie does not expense the property under Sec. 179 or bonus depreciation. Cassie's depreciation on the machine for 2019 is

A. $3,000.

B. $12,000.

C. $6,000.

D. $15,000.

Solutions

Expert Solution

Recovery Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year
1 33.33                       20.00 14.29 10 5 3.75
2 44.45                       32.00 24.49 18 9.5 7.219
3 14.81 *                       19.20 17.49 14.4 8.55 6.677
4 7.41                       11.52 12.49 11.52 7.7 6.177
5                       11.52 8.93 * 9.22 6.93 5.713
6                         5.76 8.92 7.37 6.23 5.285
7 8.93 6.55 * 5.90 * 4.888
8 4.46 6.55 5.9 4.522
9 6.56 5.91 4.462 *
10 6.55 5.9 4.461
11 3.28 5.91 4.462
12 5.9 4.461
13 5.91 4.462
14 5.9 4.461
15 5.91 4.462
16 2.95 4.461
17 4.462
18 4.461
19 4.462
20 4.461
21 2.231
Cost of assets 30000
Rate of depreciation for 1st year 20%
Depreciation $6,000
Hence correct answer C. $6000

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) 1.The vehicle...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) b. The...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) The vehicle...
Lina purchased a new car for use in her business during 2019. The auto was the...
Lina purchased a new car for use in her business during 2019. The auto was the only business asset she purchased during the year and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2019 and 2020 (Lina doesn’t want to take bonus depreciation for 2019 or 2020) in the following alternative scenarios (assuming half-year convention for all a. The vehicle cost $32,800 and business use is 100 percent...
This year Amy purchased $2,650 of equipment for use in her business. However, the machine was...
This year Amy purchased $2,650 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation expense for the equipment. a. After the accident, Amy had the choice of repairing the equipment for $1,960 or selling the equipment to a junk shop for $330. Amy sold...
The only asset acquired by Don, Inc., in 2019 was a new machine with a purchase...
The only asset acquired by Don, Inc., in 2019 was a new machine with a purchase price of $1,029,000. Don’s current-year taxable income before any Sec. 179 deduction is $60,000. If Don elected to treat the maximum possible amount of this cost as an expense in the current year rather than as a capital expenditure, the basis for determining the MACRS deduction is A. $1,029,000 B. $969,000 C. $9,000 D. $0 [6] All of the following statements regarding the Sec....
Ladora Construction Company began operations on January 1, 2019, when it acquired $30,000 cash from the...
Ladora Construction Company began operations on January 1, 2019, when it acquired $30,000 cash from the issuance of common stock. During the year, Ladora purchased $6,000 of direct raw materials and used $5,640 of the direct materials. There were 108 hours of direct labor worked at an average rate of $20 per hour paid in cash. The predetermined overhead rate was $9 per direct labor hour. The company started construction on three prefabricated buildings. The job cost sheets reflected the...
The Clarke Co. acquired a machine on May 1, 2006, at a cost of $60,000. The...
The Clarke Co. acquired a machine on May 1, 2006, at a cost of $60,000. The machine is expected to have a ten-year life and a residual value of $5,000. The estimated lifetime output from the machine is expected to be 55,000 units. Under which of the following depreciation methods would the depreciation charge be the greatest in 2006, if 9,100 units were produced in that year?
Lone Star Sales & Service acquired a new machine that cost $84,000 in early 2019. The...
Lone Star Sales & Service acquired a new machine that cost $84,000 in early 2019. The machine is expected to have a five-year useful life and is estimated to have a salvage value of $14,000 at the end of its life. (Round your final answers to the nearest dollar.) (a.) Using the straight-line depreciation method, calculate the depreciation expense to be recognized in the second year of the machine's life and calculate the accumulated depreciation after the third year of...
A business machine purchased April 10, 2017, for $98,000. On August 15, 2019, the machine was...
A business machine purchased April 10, 2017, for $98,000. On August 15, 2019, the machine was fully deprecated and sold for $67,000. a) What is the amount of the gain or loss from the sale of the machine? b) What is the nature/character of the gain or loss from the sale of the machine?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT